Vibhor Steel Tubes issue closes today for public subscription. The IPO has attracted an overwhelming response from all categories of investors thus far, as issue was subscribed 101.30 times at the end of Day 2 (Wednesday).
The ₹72.17-crore initial public offering of Vibhor Steel Tubes that opened on Tuesday received bids for 36.39 crore shares against 35.92 lakh shares on offer (net-off anchor position).
The steel pipes and tubes manufacturer has set the price band at ₹141-151, and the market lot is 99 shares.
The entire issue of the firm is a fresh issue that will go to the Haryana-based company.
Up to 50 per cent of the net offer is reserved for qualified institutional buyers, 35 per cent is for retail investors and the remaining 15 per cent for non-institutions.
While the QIB portion was subscribed 8.52 times, retail investors thronged to the issue as the portion received bids for 90.11 times while NIIs’ by humungous 252.07 times. The company, which reserved 31,595 shares for employees, saw the portion receiving bids for 78.93 times.
As part of the IPO, Vibhor Steel Tubes had raised about ₹21.52 crore from anchor investors by allotting 14.24 lakh shares to three entities at ₹151 apiece. The anchor investors are Saint Capital Fund, Chhattisgarh Investments Ltd and Neomile Growth Fund – Series I.
Proceeds from the issue will be used for working capital requirements and general corporate purposes.
Founded in 2003, Vibhor Steel Tubes is a manufacturer of high-quality steel tubes and pipes that are used in heavy engineering industries. The company’s product portfolio comprises ERW pipes for application in water transport, oil, gas and other non-toxic supplies; hot-dipped galvanised pipes for application in agriculture and infrastructure; hollow section pipes in square and rectangular forms; primer-painted pipes and crash barriers in railways, highways and roads.
The company supplies its products to Jindal Pipes.
Khambatta Securities is the sole book-running lead manager, and Kfin Technologies is the registrar of the IPO.
The company’s shares will be listed on the National Stock Exchange (NSE) and BSE.